Is private mortgage insurance different from other kinds of insurance associated with mortgages?
Private mortgage insurance protects the lender in the event of borrower default and subsequent foreclosure on the home. FHA and VA insurance also protect the lender against borrower default under a government program rather than through the private enterprise system. Credit insurance, sometimes called mortgage insurance, is life insurance coverage that pays off the mortgage in the event a borrower dies, becomes disabled, or incurs loss of health or income. Fire, liability, and theft insurance cover the homeowner from losses according to the terms and conditions of their respective insurance policies.
Private mortgage insurance protects the lender in the event of borrower default and subsequent foreclosure on the home. FHA and VA insurance also protect the lender against borrower default under a government program rather than through the private enterprise system. Credit life insurance (sometimes called mortgage insurance) is life insurance coverage that pays off the mortgage in the event a borrower dies, becomes disabled, or incurs loss of health, according to the terms of the insurance policy. Fire, liability, and theft insurance cover the homeowner and lender from losses, according to the terms and conditions of their respective insurance policies.
